U.S. Federal Reserve's New Governor Miran states that America's tariffs aren't causing inflation.
New Federal Reserve Board Member Suggests Immigration as Factor for Potential Inflation in US
Stephen Miran, the newest member of the US Federal Reserve's board, has proposed a novel perspective on inflation, suggesting that immigration could be a contributing factor. In a statement made to economic news channel CNBC, Miran expressed his belief that the rapid influx of immigrants has driven up housing prices, which could lead to inflation.
This view contrasts with the widely held belief that a lack of workers is driving up production costs and prices for food and services. Miran's stance on a stronger interest rate cut was in the minority at the Federal Reserve's meeting this week, with the central bank opting for a 0.25 percentage point cut instead.
Fed chairman Jerome Powell has previously stated that higher tariffs have driven up prices in some product groups, but the full extent is not yet clear. Trump has repeatedly claimed in recent months that tariffs do not increase inflation, a claim that Miran does not directly challenge in his immigration-focused analysis.
Miran's position on the tariffs is that they do not cause inflationary pressure because he attributes inflation primarily to immigration policy impacts. He does not see substantial inflation from the tariffs themselves. The impacts of tariffs on the overall US economy and inflation are not explicitly addressed in the earlier bullet points.
The statement does not mention any specific policy recommendations regarding immigration beyond closing the border and having migrants leave the US. The immigration policy in recent years, as mentioned by Miran, could have an impact on the US price level, specifically housing prices. However, the statement does not mention any potential consequences of immigration on other product prices or the global economy.
It is worth noting that Miran assured that he acts entirely independently in his economic analysis at the Fed. Jerome Powell made it clear that Miran was clearly in the minority with his position. The impacts of the tariffs are not yet particularly large and could potentially be just a one-off boost, according to Powell.
Miran's perspective on immigration as a factor for inflation is not directly discussed in the earlier bullet points. This potential new factor for inflation in the US beyond tariffs could spark further debate and analysis within the Federal Reserve and broader economic circles.
Read also:
- Federal petition from CEI seeking federal intervention against state climate disclosure laws, alleging these laws negatively impact interstate commerce and surpass constitutional boundaries.
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- Dim outlook for a major energy corporation
